Reversal System Indicator V1.0 MT4 — Spot Market Turning Points Before Everyone Else


If you’ve ever chased a trend only to get smacked by a sudden pullback, you’re not alone. Markets turn when most traders least expect it—coz that’s what markets do. The Reversal System Indicator V1.0 for MT4 is built to make those turns a little less scary and a lot more tradable. It helps you identify high-probability reversal zones using confluence: momentum slowdowns, exhaustion candles, volatility shifts, and structure breaks. You still trade your plan, of course, but the tool does the heavy lifting—so you’re not guessing or revenge-entering on hunches.


This isn’t a black-box “magic arrow.” It’s a rules-based indicator with visual zones, MTF confirmation, and risk cues that keep you grounded. Use it on M15–H1 for day trades, or step down to M5 if you like quick scalp setups. Prefer fewer but cleaner signals? H4 has you covered. And yes, while an indicator doesn’t “need” balance, we recommend $1000+ if you intend to actively trade its signals with realistic position sizing—so you’ve got breathing room, not panic.


What the Reversal System Indicator Actually Does


Core idea: Find where momentum fades into structure, then confirm with volatility and candle behavior. In plain English: the tool highlights areas where a trend is likely tiring and price is ripe to snap back or fully reverse.



  • Momentum fade: Tracks short-term vs. medium-term impulse using moving-average slope + oscillator divergence checks (e.g., RSI/awesome-type divergence logic without overfitting).

  • Structure confluence: Maps previous swing highs/lows and minor supply/demand to project Reversal Zones as colored bands.

  • Volatility filter: Uses ATR to avoid calling reversals in the middle of wild, random spikes; only flags zones when volatility is stabilizing or compressing.

  • Candle confirmation: Looks for pin bars, engulfing patterns, or small range breakouts to time entries—no promises, but it nudges you toward higher-quality triggers.


Result: You get clear, on-chart zones plus optional alerts when price taps a level with confirmation.



Key Features (you’ll actually use)



  • Reversal Zones (RZ): Clean bands that mark where price is likely to stall and flip.

  • MTF Confirmation: Check a higher timeframe trend/structure without leaving your chart.

  • Divergence Scanner: Background checks for momentum divergence to strengthen reversal bias.

  • ATR-Aware Signals: Filters out low-quality alerts when volatility is erratic.

  • Smart Candle Triggers: Highlights pin/engulfing/reactive bars for better timing.

  • Break of Structure (BoS) Pings: Optional cue when price breaks a minor swing after tagging an RZ.

  • Risk Cue Overlay: Shows suggested SL area (beyond the zone) and conservative TP ideas (next structure).

  • Custom Sensitivity: Tweak how reactive the indicator is; “conservative” for swing, “dynamic” for scalps.

  • Sound/Push/Email Alerts: Get notified the moment price kisses your zone with confirmation.

  • Clean UI: Minimal clutter; you can toggle layers (zones, divergence, candles) on/off.

  • Works on Majors, Gold, Indices: Designed for XAUUSD, EURUSD, GBPUSD, and more—liquid markets behave best.

  • Resource-light: Optimized for quick scanning across symbols and timeframes.


Recommended Pairs & Timeframes



  1. Pairs: Works best on XAUUSD and major FX pairs (EURUSD, GBPUSD, USDJPY); also fine on popular indices if spreads and execution are fair.

  2. Timeframes:



  • M15–H1 → sweet spot for day traders; good mix of signal frequency and reliability.

  • M5 → for experienced scalpers who can manage noise and spreads.

  • H4 → swing traders seeking fewer, cleaner turns.


How to Trade the Signals (simple blueprint)



  1. Wait for Price to Enter a Reversal Zone. No rush. Let price come to you.

  2. Look for Confirmation. A pin bar/engulfing candle or a minor Break of Structure (BoS) helps.

  3. Place SL Beyond the Zone. Give trades air—if the zone breaks cleanly, exit; no martingale, no averaging down.

  4. Set TP at Next Structure. Partial out at 1R, trail the rest to the new swing, or hold for the opposite band if trend momentum flips.

  5. Risk Per Trade: 0.5–1% is sane for most. You’re not trying to win every signal—just the good ones.


Installation & Setup (MT4)



  1. Copy the Indicator: Place Reversal_System_Indicator_V1.ex4 into MQL4 → Indicators.

  2. Restart MT4: Or refresh the Navigator window.

  3. Attach to Chart: Right-click the symbol/timeframe you want (start with EURUSD M15 or XAUUSD H1).

  4. Tweak Inputs:



  • Sensitivity: Conservative for H1/H4, Normal for M15, Dynamic for M5.

  • MTF Confirm: Enable and set HTF to H1 when trading M15, or H4 when trading H1.

  • Divergence Check: Keep on; it adds signal quality.

  • Alerts: Enable push/email if you monitor multiple charts.


Pro tip: Save a template (e.g., RZ_M15) so you can apply settings to new charts in one click.


Settings That Matter (without the fluff)



  • Zone Width (% of ATR): Higher = wider cushion, fewer false breaks; start at 0.8–1.2 ATR equivalents.

  • Trigger Strictness: From 1 (loose) to 3 (strict). Newer traders should use 2–3.

  • BoS Threshold (pips): Minimum break size to count as structure change; scale with symbol volatility.

  • MTF Weighting: 0–100. If you keep getting counter-trend chops, bump this to 60–70 so signals align with HTF bias more often.


Example Trade Flow (XAUUSD, H1)



  • Price rallies into an upper Reversal Zone that overlaps a prior supply shelf.

  • Divergence prints on the last push; candle forms a bearish engulfing.

  • BoS triggers as price breaks a minor higher low.

  • Entry: On close of the engulfing or retest of that candle’s mid.

  • SL: A little above the zone high (beyond the engulfing’s wick).

  • TP1: Next H1 structure (1R–1.5R). TP2: Trail to swing highs/lows until opposite band.


It won’t catch every turn. Nothing does. But it keeps you disciplined—no FOMO lunges into the middle of nowhere.



Risk & Money Management (the quiet edge)


An indicator’s only as good as your risk plan. Stick to your max drawdown limit (say 10–15% on the account), stop trading after 2–3 consecutive losses, and journal each setup: zone quality, HTF alignment, candle trigger, spread, news context. Do that for two weeks and you’ll see patterns—good and bad—you can lean into.


Note on balance: You can trade with less than $1000, sure, but if you want to run multiple symbols and keep risk per trade sane (0.5–1%), $1000+ gives you practical flexibility.


Who It’s For



  • Day traders who want structure-first entries—not impulse.

  • Scalpers who need clear lines in the sand (M5 with strict filters).

  • Swing traders who prefer cleaner, HTF-aligned reversals (H4).

  • Beginners who want a guided, visual way to understand where reversals tend to form.


Best Practices & Tips



  • News filter: Skip fresh signals 15–30 mins around high-impact events.

  • Confluence > Single signal: Zone + divergence + candle trigger beats any one input.

  • Less is more: Turn off layers you don’t use; clearer charts → clearer decisions.

  • Backtest in “visual” mode: Replay the last 3 months on M15/H1 to learn the rhythm.

  • Journal screenshots: Mark why you took (or skipped) a signal—your future self will thank you.


Final Word


The Reversal System Indicator V1.0 (MT4) won’t read the future, but it does map where reversals often begin—and when momentum and structure agree, you’ll feel the difference. Keep it simple, follow the blueprint, and let price come to your zones. Trade the plan, not the noise… and don’t be shy to go “strict” on the settings if the market’s choppy.


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Happy Trading